About Currency Cross-Eyed

Trading currency crosses opens a whole new side of the currency markets, as different crosses possess different qualities that can suit any style of trading. Some crosses move fast and are extremely volatile with daily ranges that may exceed over 100 pips. While other crosses move relatively slow and exhibit low volatility, which is more suited for novice traders.

Weekly Watch: July 23 to 27, 2012

Isn’t it funny how golf is so much like forex? Sometimes, you’re in a really good groove, and other times, you’re in a really bad slump.

Just take a look at Tiger Woods, who was once the world’s top golfer but now has failed to win a major tournament in 4 years. It looked as though he would end the drought and bag his 15th major championship this weekend, but a triple bogey on the 6th hole of the British Open ended all hopes for that!

On the other hand, Ernie Els had an awesome come-from-behind performance to bag the title. Now, that’s how you get things done!

I won’t lie – I was really pumped and inspire by Els’ solid game! So this week, I’m hoping to replicate his consistent performance and grab a winner or two, not in golf, but in forex! Hopefully, these charts will help me out:

EUR/JPY

Considering the huge euro sell-off that we recently saw, it’ll probably be best to look for ways to short this sucka. The way I see it, we could see a retracement to the previous week low (PWL) in the event price tries to fill the weekend gap. If this level doesn’t hold, there’s a chance price will meet resistance between 96.00 and 96.50, as it found solid support in this area before.

WO: 94.99

Top WATR: 96.29

Bottom WATR: 93.69

PWH: 97.38

PWL: 95.35

GBP/JPY

Aha! This one didn’t take long to catch my eye. The area around the PWL and weekly open (WO) jumps right at you because it was a solid support level last week. That being the case, it could see interest again this week. Also, I’d keep my eye on 123.00 if I were you.

WO: 122.43

Top WATR: 123.76

Bottom WATR: 121.10

PWH: 123.92

PWL: 122.49

EUR/GBP

The .7800 major psychological handle (MaPs), which served as support momentarily last week, is still within striking zone, so this could be a good place to play a retracement. But of course, with how weak the euro has been lately, price could end up just forging new lows and breaking right through the WO.